The South Dakota residential real estate purchase agreement (“purchase and sale agreement”) is a contract that outlines the terms of a real estate transaction between a buyer and seller of real property. The main terms of the agreement consist of a purchase price, down payment, and the financing terms (if any).
The parties may also enable the agreement to be subject to contingencies, for any agreed-upon terms. Once the form has been signed by both parties, each shall have the duty of specific performance to complete their end of the deal in order to facilitate a closing.
Do Sellers in South Dakota Have to Disclose Property Defects?
South Dakota does require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.
Required Seller Disclosures in South Dakota
Along with any material defects with the property, sellers in South Dakota will also need to provide the following:
- Seller’s Property Condition Disclosure Statement. In South Dakota, before a written offer can be made, the seller must deliver to the buyer this report mentioning any known material issues with the property.
- Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.
- Real Estate Relationships Disclosure. This form is used to establish the relationship between a buyer or seller and a licensed real estate agency.
